Full Breakdown
California Governor Backs Proposition 42 to Block Billionaire Wealth Tax
By Drooid · · How we work
Proposition 42 vs. Proposition 40: The Ballot Clash
California voters will decide two competing measures in the November election. Proposition 40 proposes a one-time 5 % tax on the assets of Californians worth more than $1 billion who reside in the state on January 1, 2026. About 250 individuals would be affected, and supporters estimate the tax could raise roughly $100 billion, with 90 % earmarked for Medi-Cal. Proposition 42, backed by billionaire donors, would cancel the tax by prohibiting any retroactive levy and banning future state taxes on personal property such as retirement accounts, investments, business holdings and art collections. Under state law, if both measures pass, the one receiving more votes prevails.
Funding and Political Backers
The anti-tax campaign is financed by “Building a Better California,” a group funded by Google co-founder Sergey Brin and other tech billionaires. Brin alone has contributed more than $102 million; total spending by billionaire opponents exceeds $187 million, while proponents of the wealth tax have raised about $32 million, according to reports from CalMatters and Quartz. Brin’s fortune, estimated at roughly $270 billion, could face a tax bill of nearly $14 billion if Proposition 40 passes, a figure cited in a CNN report.
Official Positions
Governor Gavin Newsom endorsed Proposition 42, framing it as protection for retirees’ savings.
- “We all agree that Californians deserve to have their retirement and life savings protected from new state taxes,” — California Gov. Gavin Newsom, of california governor “We all agree that Californians deserve to have their retirement and life savings protected from new state taxes,” — California Gov. Gavin Newsom, of california governor
Newsom has opposed the billionaire tax since its inception, arguing it contains “fundamental flaws.” The governor’s office has not taken a position on a third measure, Proposition 41, which would impose spending limits and audits on any revenue generated by the wealth tax.
Opposition and Criticism
Labor leaders and progressive lawmakers argue the anti-tax measure is a “poison-pill” designed to derail funding for health care, food aid and education. **Rep. Critics contend the measure exploits middle-class fears about retirement security to defeat Proposition 40.